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Destroyers.

(f

23. The first two vessels of a new series, similar in many respects to the 'Gordi" class, but having two funnels and with a different lay-out of armament, are nearly completed. Their names are Letuchi and Slavni.

It is considered that there are fifteen more destroyers either of this improved "Gordi" class or of the new class building in the Soviet naval shipyards, of which at least nine should be in an advanced state of construction.

Icebreakers.

24. The Molotov, a sister ship of the Stalin, which has been under construc- tion for the last three years, is expected to be completed this year.

Japan.

25. A review of the Japanese Navy by the Emperor was to be held on the 10th October at Yokosuka and fleet exercises on a large scale were expected to begin on the following day. The Combined or Main Fleet and the 4th Fleet are taking part in the exercises. Units of the 4th Fleet, which were at the Pelew Islands, and of the Combined Fleet, which have been reinforcing the China Fleet, returned to Japan early in the month, presumably to take part in this review and exercises.

MILITARY SITUATION.

Italy and Italian Possessions.

26. It is now over three weeks since the Italian forces moved into Egyptian territory and advanced to Sidi Barrani. Since then there has been no further eastward movement except for the advance, and subsequent withdrawal, of a column of M.T. and tanks which was probably making a reconnaissance in force. Despite continued harassing by our aircraft, there has been considerable M.T. activity in the L. of C. area. The slowness of the advance indicates that Marshal Graziani is taking every step to bring up supplies and improve his communications. Further advance by the Italians would involve greater difficulties of supply, particularly of water, and the lengthened lines of communication will become increasingly vulnerable to our air and naval bombardment.

27. Concentrations opposite the Sudan and Kenya are still maintained. The Italian forces at Metemma have been recently reinforced.

The Balkan States and Turkey.

Roumania.

28. German troops, which included motorised A.A. artillery units, marched into Roumania on the 7th October, but no reliable details of strength or identifications are yet available. One report puts the total expected at one division, i.e., about 17,000 men.

29. Although at present, there is no large force of German troops in Roumania, it is believed that under one pretext or another Germany will endeavour to increase the number and thus consolidate her hold over the country. The result of such tactics would be that, peacefully, and practically unnoticed, large German forces would eventually occupy Roumania.

Turkey.

30. The dispositions of Turkish troops in Thrace are still somewhat obscure, but it appears that the area to the south of the junction of the Bulgarian, Greek and Turkish frontiers has been considerably reinforced.

Greece.

31.

While the threat of attack by Italy is regarded as no less imminent, the Greek General Staff are reticent as to the details of any further defensive

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